The chancellor is expected to put a sweeping business tax cut at the centre of his Autumn Statement today.
Despite repeatedly saying “this is not the time for tax cuts”, Jeremy Hunt is expected to start reducing personal and business tax rates in a “Budget for growth”.
He is also expected to announce supply-side reforms, including streamlined planning rules.
Hunt’s flagship reform to boost Britain’s growth rate will be the permanent extension of “full expensing”, with the measure put at the heart of the Autumn Statement. The £9bn-a-year tax break helps companies that invest in equipment and technology, a move he will bill as the biggest tax cut for businesses in modern British history.
The scheme, which allows companies to claim back up to 25p for every pound invested, was due to expire in 2026 and was a crucial demand of business groups.
It has also been reported that he will cut national insurance contributions by 1%.
The Treasury has been handed some additional fiscal headroom, estimated to be as much as £25bn, by the fall in interest rates and the freezing of tax thresholds in March.
